L1B- Tax, RRSP, Banking accounts and OHIP?

myflamesky · Post by **myflamesky** » Tue Sep 06, 2011 9:04 am

Hello all,

My wife and I are relocating to California, we both are Canadians and both are on L1B visa. We got a few questions and will greatly appreciate any help!

1. We know many people declare non-resident of Canada to avoid duplicate tax, and we may think about applying Green Card in the future but haven't really decided yet. So should we declare non-resident of Canada and delcare resident of the US? Is this the best choice?

2. Should we withdraw all RRSP money before moving to the U.S.? What are the pros and cons if we keep RRSP in Canada?

3. Should we cancel all Canadian banking accounts? Any pros and cons if we cancel them?

4. What should we do for OHIP? Do we need to contact OHIP office to cancel it?

Thanks a lot in advance!

nelsona · Post by **nelsona** » Tue Sep 06, 2011 9:55 am

1. Your tax residency is a matter of fact, not a declration. The dy you left Canada for the US was your departure date, and you must file your Cdn departure return accordingly. See the emigrants guide for CRA.

2. Absolutely NOT. Take then out after leaving Canada, and pay only 25% tax. Doing do beforehand subjects the to full marginal taxrate for your province.

3. I would keep one bank acct and one creita card. Saves on exchange fees.

4. You OHIP is of little value in US, and will be invlzid once you move. You will get it back when you come back.